Central Bank of Nigeria allots ₦2.6tn in OMO bills amid high demand

The Central Bank of Nigeria (CBN) has allotted ₦2.603 trillion in Open Market Operations (OMO) bills following massive investor demand totaling ₦4.649 trillion. The auction was designed to absorb excess liquidity from the banking system, which was reported to be approximately ₦7 trillion.

The CBN offered ₦300 billion each for two different maturities: 103-day and 138-day bills. For the 103-day instrument, investors submitted ₦1.268 trillion in bids, resulting in an allotment of ₦449.740 billion at a spot rate of 20.39%.

Demand was even stronger for the 138-day maturity, where ₦3.657 trillion in bids were submitted against the ₦300 billion offer. The CBN allotted ₦2.154 trillion for this tenor at a spot rate of 20.01%. The high level of subscription is attributed to increased interest from banks and foreign portfolio investors seeking high yields in naira-denominated fixed-income assets.